FX Risk Management
Shield your Business from FX Volatility and Operate Internationally with Confidence
In today’s global market, exchange rate movements have a significant impact on your bottom line. Whether you’re making international payments, manging overseas revenues, or investing in foreign assets, currency volatility introduces risk that can affect both profitability and cash flow.
Contact usOur Approach
FX Risk Management is not about speculation – it’s about protecting your margins and providing certainty to your business. Our team of specialist work closely with you to:
Identify exposure
Understand how and where FX fluctuations affect your business.
Develop a strategy
Align FX solutions with your commercial goals, budgets and timelines.
Implement hedging tools
From spot contracts to flexible forward hedging, we provide structures that help secure rates and reduce uncertainty.
Ongoing support
Markets move, and so may your requirements. Your account manager ensures strategies remain aligned to your needs.
The Importance of FX Risk Management
Markets are unpredictable – and FX volatility can significantly impact the cost of doing business overseas. If your company sends or receives funds internationally, then you are exposed to FX risk. At Capitex we help clients take control of this by implementing risk management strategies.
Contact usProtect Profit Margins - Hedging ensures that your profit margins are not eroded by sudden, unfavourable shifts in exchange rates. This is particularly crucial for businesses that operate on tight margins.
Mitigate Risk - Forward contracts act as a form of insurance, safeguarding your business from market volatility, especially during times of geopolitical tension or economic instability.
Budget with Certainty - Locking in exchange rates means you know the exact future cost of expenses or the value of expected international revenues in your local currency. This improves budgeting accuracy, strengthens forecasting, and enables more effective resource allocation.
Stabilise your Pricing - By having predictable costs, you can offer more stable and competitive pricing for your own goods and services to customers, enhancing your market position.
Capitex hedging strategies allow you to balance protection with flexibility. Instead of leaving outcomes to chance, you take control of your exposures and build resilience into your financial planning.
Managing Risk with the right FX Instruments
- Buy or sell currency at the current market rate.
- Settlement is immediate (usually within two working days).
- Best for urgent or one-off international payments.
- Lock in todays exchange rate for a future date (up to 24 months).
- Provides certainty over future costs or revenues.
- Ideal for budgeting, forecasting, and protecting margins.
- Place an order to buy or sell currency at a better rate than the current market.
- Execution only happens if the market improves to your target level.
- Useful for maximising value when timing isn’t urgent.
- Protects against adverse movements by setting a “worst-case” rate.
- If the market falls to that level, your order automatically executes, limiting potential losses.
- Often combined with limit orders to create a balanced risk/reward strategy (also known as OCO).
"Using Capitex gave us the ability to save money on execution of SPOT deals against our banking partner, but also fix the exchange rate we would obtain when repatriating international investment profits back to the UK." Founder & Director
Strategic Investment Group
"Capitex took the time to introduce us to products that helped hugely in insulating our business from FX headwinds. The solution that was designed, built, and implemented enabled us to drive down the cost of our imports and increase our yearly profit margin by over 4%." Co Founder & Owner
Leading Online Fashion Brand
FX Risk Management FAQs
A forward contract allows you to lock in today’s exchange rate for a future payment date. This gives you certainty over costs and protects against adverse currency movements. It’s a key part of a company’s hedging strategy.
With Capitex, you can secure 100% or a portion of your exposure. Many clients choose to hedge part of their requirement giving them a balance of certainty and flexibility.
At Capitex, you can enter into a forward contract for up to 24 months.
Yes, forward contracts typically require an initial deposit (known as margin or collateral). This is a small percentage of the total contract value, ensuring the agreement is secured. Your account manager will explain the margin process clearly before booking.
With a forward contract, as the rate is fixed, you will lose the benefit of the market moving favourably in between the trade date and the maturity date. Any cancellations or amendments to the contract after the trade date will incur additional charges.
If the market moves unfavourably against the forward contract position (beyond the variation margin), this may result in a margin call.
This is a request for additional collateral to be posted against the position. The margin is fully refundable once the contract concludes, or if the market trend reverses positively. Importantly, a margin call does not incur extra costs – it’s a temporary collateral requirement.